GKN Holding Corp. Reports Third Quarter Fiscal 1998 Earnings.NEW YORK--(BUSINESS WIRE)--Dec. 15, 1997-- Quarter Reflects Volatile Markets GKN GKN Guest, Keen & Nettlefolds (British global engineering company) GKN Global Knowledge Network GKN Gemeenschappelijke Kernenergiecentrale Nederland GKN Global Korean Network GKN Iks Gorkon (Star Trek novel Series) Holding Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NMS See NetWare Management System. : GKNS) reported today break-even profitability in its fiscal quarter ending October 31, 1997. For the quarter, the Company had income before special charges and income taxes of $343,000. The Company recorded special charge during the quarter of $204,000 reflecting costs of settling its previously disclosed settlement with the National Association of Securities Dealers National Association of Securities Dealers (NASD) Nonprofit organization formed under the joint sponsorship of the investment bankers' conference and the SEC to comply with the Maloney Act, which provides for the regulation of the OTC market. Regulation, Inc. (NASDR NASDR See NASD Regulation, Inc. (NASDR) ). After the special charge and income taxes the Company had a loss of $57,000, or $.01 per share. Earnings per share, excluding special charges, for the quarter were $.01, compared to the $.10 for the same period in the prior year. Earnings (loss) per share, excluding special charges, for the nine months ended October 31, 1997 were $(.15), compared to $.86 for the comparable previous period. Net earnings (loss) per share for the quarter and nine month period were $(.01) and $(.31), compared to $.09 and $.80 for the comparable periods last year. Revenues for the quarter ended October 31, 1997 were $15,117,000, an 8% increase over the same quarter in the prior year and a 2% increase over the second quarter of the current year. "Our operating results for the third quarter continue to reflect the year of transition we are currently experiencing," said David Nussbaum, Chairman and Chief Executive Officer of the Company. "The volatility in the markets during the quarter resulted in a loss on our trading desk Trading Desk A desk where transactions for buying and selling securities occur. Trading desks can be found in most organizations (banks, finance companies, etc.) involved in trading investment instruments such as equities, fixed-income securities, futures, commodities and foreign . Without the trading loss our quarterly results would have been comparable to those of the same quarter in the prior year." This press release contains forward-looking statements by the Company that involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. Such risks and uncertainties are described in the Company's filings with the SEC, including its annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended January 31, 1997 and its Registration Statement on Form S-1, as amended. The Company, through its four primary operating subsidiaries, GKN Securities Corp., Shochet shochet the operant slaughterer in the Jewish method. Securities, Inc., GKN Securities AG (Switzerland), and Southeast Research Partners, Inc. is primarily engaged in securities brokerage, securities trading and investment banking, with an emphasis on emerging growth and small capitalization companies. Headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , the Company maintains operations in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Florida, Connecticut, Massachusetts and Zurich, Switzerland. -0-
GKN Holding Corp.
Summary Consolidated Statements of Income
Three Months Nine Months
Ended October 31, Ended October 31,
1997 1996 1997 1996
Revenues $15,117,000 $14,004,000 $38,461,000 $53,008,000
Expenses 14,774,000 12,496,000 40,243,000 43,046,000
Income (loss)
before special
charges and
income taxes 343,000 1,508,000 9,962,000 (1,782,000)
Special charges 204,000 141,000 2,192,000 627,000
Income (loss) before
income taxes 139,000 1,367,000 9,335,000 (3,974,000)
Income taxes 196,000 552,000 3,993,000 (1,468,000)
Net income $ (57,000) $ 815,000 $(2,506,000) $ 5,342,000
Weighted average common
shares outstanding 8,096,769 8,694,355 8,120,427 6,667,294
Earnings per share $ (0.01) $ 0.09 $ (0.31) $ 0.80
Earnings per share excluding
special charges $ 0.01 $ 0.10 $ (0.15) $ 0.86
CONTACT: GKN Holding Corp. Peter R. Kent Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. and Chief Financial Officer 212/208-6647 |
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